German Chancellor Angela Merkel said on Tuesday during a tour of Gulf states that Germany needs to build up its economic presence in the region, so it can remain competitive with other countries, primarily from Asia.

Ms. Merkel started her tour of the Gulf in Abu Dhabi, where on Tuesday she is scheduled to visit Masdar City, which aims at becoming the world’s first carbon—dioxide—emission—free city.

She is also due to meet with the President of the United Arab Emirates, Sheikh Khalifa Bin Zayed al—Nahyan.

Ms. Merkel, who arrived late on Monday, was received by UAE Vice-President Sheikh Mohammed bin Said al—Nahyan. She also witnessed the signing of joint agreements in oil, gas, education, electricity fields as well as cooperation in small medium enterprises.

Accompanied by a high—ranking business delegation, Ms. Merkel is also to pay visits to Saudi Arabia, Qatar and Bahrain on the tour, which lasts through Thursday. It is her second visit to the region as chancellor.